sebi:WTM/SR/NRO-CIS/05/05/2013
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Facts / Headnote
BIL, its promoters and directors directed not to collect any money from investors, not to dispose of properties/assets owned or acquired without prior permission of SEBI, and not to divert funds raised from public; order effective immediately till further orders and treated as show cause notice requiring reply within 15 days with opportunity of personal hearing.
Provisions invoked
- s. 11A
- s. 11
- s. 19
- s. 55A
- s. 73
- s. 67(3)
- s. 67
- s. 73(1)
Holding
SEBI prima facie held BIL's issuance of redeemable preference shares mobilising approximately Rs.92-95 crores was a deemed public offer to more than fifty persons and issued ad-interim ex-parte directions restraining further collection, disposal of assets and diversion of funds pending final decision.
Full text
Page 2 of 7 these letters, 9 letters returned undelivered, replies were received from 4 additional directors on the board of BIL and no response was received from other entities.
Page 3 of 7 appears to be mobilising funds through issuance of redeemable preference shares, it becomes incumbent upon SEBI to intervene urgently in the matter . Therefore, in the facts and circumstances of this case, it becomes necessary for SEBI to act swiftly and proceed ex-parte on the basis of material available on record.
Page 4 of 7 (b) From the copy of receipts and payment account of BIL received from Directorate of Income Tax, Kolkata, BIL had mobilized Rs.959,193,767 (Rs. 95.9 cr approx) till year the financial year ending 2011 through issue of share certificates. (c) From the balance sheet of BIL as on March 31, 2012 as submitted by BIL, BIL has mobilized Rs.92,01,72,000 (Rs.92 cr approx.) through issue of redeemable cumulative preference shares upto March 31, 2012. (d) BIL has issued equity shares during FY 2009-10 as well as during FY 2011-12. Also, during FY 2011-12 BIL has authorized issue of preference shares to the extent of Rs.101,90,01,000 ( Rs.101.9 cr approx.).
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Source: SecMarx — sebi:WTM/SR/NRO-CIS/05/05/2013. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.